Sky Reports $30.8M Revenue and Executes First Token Burn

Sky reported $30.8 million in gross protocol revenue for September, representing a 49.7% increase from the previous year, according to a financial and operational update published by the Sky Frontier Foundation. The update also detailed the protocol's first Stage 2 token burn, which permanently removed 2.86 million SKY tokens from circulation.

Revenue and Token Burn Framework

Net protocol revenue reached $12.32 million for the month, shifting from a $5.41 million loss a year earlier, though the Foundation noted that expense classifications affected the comparison. After expenses and revenue allocations, the protocol remitted $7.15 million to Sky Reserves, which closed September at $85.08 million against a $150 million Solvency Reserve target. September marked the first full month of the Stage 2 framework, with revenue allocations for SKY buybacks and USDS payments reaching $5.08 million.

The protocol completed its first Stage 2 burn on September 13, using the framework's allocation of 5% of monthly Net Protocol Surplus to buy back and permanently remove SKY tokens on the open market.

Institutional Lending and Treasury Allocations

Galaxy allocated $100 million to sUSDS and approved the token as institutional loan collateral under an agreement announced in September. Meanwhile, a $500 million credit facility between Grove and Galaxy reached 75% utilization, financing $375 million in senior secured institutional loans backed by Bitcoin or Ethereum.

Key facts

• Sky reported $30.8 million in September gross revenue, up 49.7% year-over-year.
• The protocol completed its first Stage 2 burn of 2.86 million SKY tokens on September 13.
• Galaxy allocated $100 million to sUSDS and approved it as institutional loan collateral.
• Grove and Galaxy's $500 million credit facility financed $375 million in loans.